3min chapter

Forward Guidance cover image

The Debt Ceiling Approaches | Joseph Wang & Dominique Dwor-Frecaut

Forward Guidance

CHAPTER

The Fed's Quantitative Tightening Threat to US Politics

In 2020, the Treasury actually I think issued two trillion. So they should try this much, but like exactly as you mentioned, the Fed is also doing tremendous QE. This wouldn't drag the reverse view over the so it drained the banking sector instead. It would be some actions by the Fed to try to paper things over a bit. That's not my base case, but it's definitely a possibility because the issuance is so aggressiveAs far as marginal buyers of Treasury bills have not been the money market funds.

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